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If Firms Are Competitive,under What Circumstances Will Labour-Market Discrimination Exist

Question 6

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If firms are competitive,under what circumstances will labour-market discrimination exist in the long run


A) It is likely to be nonexistent in the long run since any firms with discriminatory preferences will be driven out of the market.
B) It is likely to be nonexistent in the long run since workers who receive a wage less than their marginal product will leave the labour market.
C) It is likely not to be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies.
D) It is likely to be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.

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